Paraguay faces energy scarcity and traceability challenges

Paraguay is navigating a complex transition regarding its energy resources and agricultural exports. Industry Minister Marco Riquelme has advocated for using the country's low-cost electricity to drive industrialization and job creation, noting that current energy exports to Brazil often return to Paraguay as finished goods, contributing to a $6 billion annual manufacturing deficit within Mercosur.

However, experts from the Institute of Paraguayan Electrical Sector Professionals (IPPSE) warn of an impending energy crisis. Projections suggest that by 2028, the country will enter a critical period, and by 2030, Paraguay is expected to consume 100% of its allocated energy from the Itaipú and Yacyretá dams. To meet future demand, experts suggest the nation may need to import between 500 and 1,000 megawatts of new power annually, leading to higher costs.

In the agricultural sector, Raúl Valdez, president of the Paraguayan Chamber of Oilseed and Cereal Processors (CAPPRO), emphasized the need to strengthen biodiesel production and improve traceability. This is seen as essential for meeting European market requirements regarding deforestation-free products. While the private sector is developing tracking tools, Valdez noted that better coordination between public and private entities is required to manage documentation and environmental licensing effectively.